FY26 (Fiscal year ending Feb 2027) Q2 Earnings Presentation Materials

Overview of Results

For the second quarter of the fiscal year ending February 2027, consolidated revenue was 283,437 million yen, up 0.9% year-on-year; operating income was 13,271 million yen, up 4.6%; ordinary income was 13,293 million yen; and interim net income was 8,426 million yen, maintaining a trend of profit growth. On a basis excluding earthquake-related impacts, profitability improved due to gross margin improvement and restraint of selling, general and administrative expenses. Special losses related to the Kumamoto earthquake affected interim net income. The full-year forecast remains unchanged, but revisions may be made depending on the outcome of assessments of earthquake impacts.

Outlook and Strategy

Under the Third Medium-Term Management Plan, the company will continue measures to balance price competitiveness and expansion of higher value-added products. Initiatives include strengthening rollout of the private brand "Yume Ichi," balancing low-price measures with high value-added offerings, and advancing efforts to transform into a destination retailer while validating GMS/SM strategies. Although the effects of the Kumamoto earthquake continue, the company expects recovery in sales through capturing reconstruction demand and reopening stores, and will carefully assess second-half performance.